Its another major reveal of the micro-blogging site, Twitter by none other than Elon Musk. This time, he said that his company still has a negative cash flow because of its heavy debt load and approximately 50 per cent drop in advertising revenue.Twitter lost 50% in its advertising revenue In a tweet, CEO Musk said, “The social media site will need to reach positive cash flow before we have the luxury of anything else.” Separately on Saturday, he announced that the platform will increase the number of tweets verified accounts can see each day by 50 per cent, following complaints from users.Were still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else.— Elon Musk (@elonmusk) July 15, 2023After the billionaire acquired the company last year, several top advertisers paused spending on this social media platform, concerned about the changes Musk could make in his leadership. Some of them returned: Elon MuskEarlier this year, he had said that many of the advisers who fled had returned and that becoming cash-flow positive was imminent.In Aprils Twitter Space, Musk said, “Almost all of them have either come back or said theyre coming back.”According to media reports, the advisers spending has dropped by 89 per cent to $7.6 million over two months early this year, according to estimates for market research firm Sensor Tower. The top 10 advertisers had spent $71 million on ads from September to October of 2022, ahead of Musks acquisition.Twitter vs ThreadsMeanwhile, Mark Zuckerbergs Meta released his own Twitter competitor – Threads, this month, which instantly reached over 100 million users in the days after its launch. Some lawmakers have transitioned over to the alternative platform, but are still wary about committing to it.Days before the launch of Threads, Twitter faced a backslash from its users after it imposed a temporary cap on the number of tweets that accounts can see each day. The limit had initially been set at 600 unverified users, and 6,000 for verified accounts, before eventually being lifted to 1,000 and 10,000, respectively.The latest increase suggests verified users will now be able to see 15,000 posts, however, the billionaire didnt specify it yet.
